Saudi Arabia’s oil giant, Aramco, has committed over $25 billion in contracts to advance its ambitious gas expansion projects. This initiative aims to increase sales gas production by more than 60% by 2030, compared to 2021 levels.
Aramco’s recent announcement highlights several key developments, including the Phase II progression of the extensive Jafurah unconventional gas field and the third phase expansion of its Master Gas System. The scope of work encompasses the construction of new gas compression facilities, associated pipelines, gas processing trains, utilities, sulfur and export facilities at the Jafurah Gas Plant, as well as the deployment of new gas rigs and ongoing capacity maintenance.
The Jafurah gas field, a significant asset, is estimated to contain 229 trillion standard cubic feet of raw gas and 75 billion stock tank barrels of condensate. Since the initiation of Phase I of the Jafurah development in November 2021, the project has been on track, with the initial start-up expected in the third quarter of the next year.
Aramco envisions the total lifecycle investment in Jafurah to surpass $100 billion, with a sustainable sales gas production rate of two billion standard cubic feet per day by 2030. Additionally, significant volumes of ethane, natural gas liquids (NGL), and condensate are anticipated.
The Master Gas System, a vast network of pipelines connecting Aramco’s critical gas production and processing sites throughout the kingdom, will also see significant expansion.
Amin H. Nasser, President & CEO of Aramco, stated, “These contract awards demonstrate our firm belief in the future of gas as an important energy source and a vital feedstock for downstream industries. The scale of our ongoing investment at Jafurah and the expansion of our Master Gas System underscores our intention to further integrate and grow our gas business to meet anticipated rising demand.”
Nasser emphasized that this expansion complements Aramco’s portfolio diversification, creates new employment opportunities, and supports Saudi Arabia’s transition towards a lower-emission power grid. He credited the success of these projects to the hard work, innovation, and collaborative efforts of Aramco’s extensive network of suppliers and service providers.
The company has awarded 16 contracts worth approximately $12.4 billion for the second phase development at Jafurah. This phase involves the construction of gas compression facilities, pipelines, expansion of the Jafurah Gas Plant, and the establishment of the Riyas Natural Gas Liquids (NGL) fractionation facilities in Jubail. The Jubail project will include NGL fractionation trains, utilities, storage, and export facilities to process NGL from Jafurah.
